Luoyang Glass : ANNOUNCEMENT ON PROGRESS OF LITIGATION INVOLVING A WHOLLY-OWNED SUBSIDIARY

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

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ANNOUNCEMENT ON PROGRESS OF LITIGATION INVOLVING

A WHOLLY-OWNED SUBSIDIARY

Luoyang Glass Company Limited* (the "Company") and all members of the board (the "Board") of directors (the "Directors") warrant the truthfulness, accuracy and completeness of the contents of this announcement, and accept several and joint responsibilities for the false information, misleading statements or material omissions in this announcement.

This announcement is made by the Company pursuant to Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules") and the Inside Information Provisions (as defined under the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

References are made to (i) the announcement on litigation involving a wholly-owned subsidiary of the Company dated 10 June 2019 (the "Announcement") and (ii) the announcement on progress of litigation involving a wholly-owned subsidiary of the Company dated 30 September 2019. Unless otherwise defined, capitalized terms used herein shall have the same meanings as those defined in the Announcement.

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The Company hereby discloses the following particulars on the progress of the litigation involving Hefei New Energy, a wholly-owned subsidiary of the Company:

1. BASIC INFORMATION ON THE LAWSUIT
   On 10 June 2019, the Company disclosed the case over the dispute on price in the gas supply contract between Hefei New Energy, a wholly-owned subsidiary of the Company, and Hefei Gas Group (the "Case"). The amount involved in the lawsuit is RMB18,640,395.8, including the overdue natural gas fees of RMB18,364,922 and the late payment penalty of RMB275,473.8.
   On 30 September 2019, the Company disclosed the judgment of the first instance given by the People's Court of Hefei Hi-tech Zone after hearing the Case, in which the People's Court of Hefei Hi-tech Zone adjudicated that Hefei New Energy shall pay the natural gas fees of RMB8,851,360, the late payment penalty and the corresponding litigation fees on the Case to Hefei Gas Group.
   Subsequently, Hefei New Energy filed an appeal against the judgment of the first
   instance given by the People's Court of Hefei Hi-tech Zone to Hefei Intermediate People's Court of Anhui Province* (安徽省合肥市中級人民法院) (the "Hefei Intermediate People's Court"). Recently, Hefei Intermediate People's Court has made a final judgment on the Case and issued the Civil Judgment ((2019) Wan 01 Min Zhong No. 10314).

Hefei New Energy proposes to file a petition on the aforementioned judgment given by Hefei Intermediate People's Court.

1. RESULTS OF THE LAWSUIT
   The main contents of Civil Judgment ((2019) Wan 01 Min Zhong No. 10314) issued by Hefei Intermediate People's Court are as follows:

1. The appeal was dismissed and the original judgment was upheld;

1. The litigation fee of the second instance of the case of RMB140,005 shall be borne by Hefei Gas Group and Hefei New Energy with RMB30,333 and RMB109,672 respectively.

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1. IMPACTS OF THE LITIGATION ON THE COMPANY
   This litigation will affect the profit of the Company for this year by approximately RMB8,320,000. Hefei New Energy proposes to file a petition on the judgment given by Hefei Intermediate People's Court.
   The Company will closely follow the developments of the case and fulfill its obligation of information disclosure in a timely manner. Investors are advised to pay attention to investment risks.

By order of the Board

Luoyang Glass Company Limited*

Zhang Chong

Chairman

Luoyang, the PRC

23 December 2019

As at the date of this announcement, the Board comprises five executive Directors: Mr. Zhang Chong, Mr. Xie Jun, Mr. Ma Yan, Mr. Wang Guoqiang and Mr. Zhang Rong; two non-executive Directors: Mr. Ren Hongcan and Mr. Chen Yong; and four independent non-executive Directors: Mr. Jin Zhanping, Mr. Ye Shuhua, Mr. He Baofeng and Ms. Zhang Yajuan.

• For identification purposes only

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